Quotes with Resistance & Support
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DOW above 10,100. Whats next?

This article was posted on Oct 19, 2009 and is filed under Market Outlook

Dow Jones currently trading at 10,103 up +1.09%. NASDAQ at 2,175.03 up +0.85%. Dow seemed to easily cross is 10,000 mark resistance level easily today after a handful of earnings reports revived hopes that the economy is improving.

This adds to the probability that Nifty and Sensex too are likely to do well. The resistance for Nifty is at 5180. Above this we could see 5250 levels in near term.

Coming to the technical’s the 20 DMA for the Nifty now stands at 5026. The level 505-5070 acts as a strong support for Nifty. The RSI for the Nifty stands at 63, which seems overvalued.

How the markets trade in the next coming months also depend on the Q3 and Q4 earnings of various companies. Tata group company, Tata Consultancy Services (TCS), reported net profit of Rs 1,642 crore in the second quarter (July-September), up 29.17 per cent over the corresponding period last year. ( Watch ).

Over the next few years Realty could be a sector that could outperform the Markets. Unitech is once such stock that could fetch good returns over a Long period. For the last seven months the company has made bookings of nearly Rs 40 billion (Rs 4,000 crore) which is ahead of most estimates.

We could possible be in a bullish market, but to continue the Trend it is important that we consolidate current levels(5100) for some time. The consolidation will build a base for the markets, from where it could show a good bounce over the next few months or so..

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